US Pharma Companies Allocate $2.7 Million for Government Reimbursement Budgets, According to Pharmaceutical Intelligence Firm Cutting Edge Information

RESEARCH TRIANGLE PARK, NC--(Marketwired - June 19, 2015) - Companies' budgets for government reimbursement activities either increased or remained constant between 2012 and 2014, according to a recent benchmarking study by pharmaceutical intelligence firm Cutting Edge Information.

Digging into the budget allocations further, Cutting Edge Information's study found that companies allocate the majority of the US government reimbursement budget to employee compensation. Although individual companies vary in how they spend their budgets, all surveyed companies dedicate the largest percentage of their spending -- an average of 58% -- to account manager compensation.

"Government reimbursement is one area where company size does not seem to play a role in the amount of funds allocated to these activities," said Jacob Presson, senior research analyst at Cutting Edge Information. "We didn't really find any significant differences between how small and Top 50 pharmaceutical companies allocate these budgets."

The second largest budget allocation, which averages only 16% of budgets, is senior management compensation. Companies generally have fewer senior managers than account managers, so the difference in budget allocation is not surprising. The greatest differences in companies' budget allocations are found in technology, audits and other overhead costs. Technology expenses include customer relationship management (CRM), price databases or any other items that could help companies with government reimbursement. Budget allocations for technology vary between 5% and 25%.

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